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FBI agent: Recording on. Mr. Tobin, I’m special agent Johnson of the FBI. You know why you’re here right?
Tobin: I think so.
FBI Agent: Let me explain it to you. We have conclusive evidence of the stock fraud you ran with your business partner. You ripped off innocent people for more than $15 million with your pump and dump stock scheme. You know, those two small companies you controlled and how you pushed investors to drive the stock prices up so you could sell? Ring a bell? You’re looking at a minimum sentence of five years in prison.
Interrogation
Tobin: I understand.
FBI Agent: The reason for this meeting is to find out if you have anything you want to tell us that might help to reduce your sentence.
Tobin: If I give you information about another crime, will I get immunity from prosecution for that crime?
FBI Agent: Mr. Tobin, you are not in a position to negotiate, but in the spirit of trying to move this along, maybe. You might get immunity for this new crime once we hear what you have. The immunity does relate to the stock fraud case.
Tobin: I understand.
FBI Agent: So, out with it.
Tobin: I went to Yale and three of my daughters did as well. I really want my fourth daughter to go to Yale. It's a family thing.
FBI Agent: That’s touching Mr. Tobin, but hardly a crime.
Tobin: How about this? I am bribing Rudy Meredith, the women’s soccer coach at Yale, to get my daughter admitted to the school.
FBI Agent: Mr. Tobin, that’s a great story, but there’s no support. Would you be willing to wear a wire when you meet with Meredith?
Tobin: Yes.
That was Morrie Tobin, LA-based scammer, facing the fact that he needed something — anything — to give the FBI to reduce his prison sentence. The FBI already raided his luxurious LA home and had all the evidence it needed to send Tobin away for a long vacation behind bars.
When they heard what Tobin had the offer, the FBI agents were surprised, but knew how to run down a lead. The new information from Tobin about the Yale coach was interesting, but, as we shall see, it was the tip of a enormous iceberg.
FBI Agent: Mr. Tobin, please take off your shirt and let the technician set up the wire. Remember what we discussed. Speak normally with Coach Meredith, but you must get him to demand or accept the money in exchange for getting your daughter into Yale. Got it?
Tobin: Yes, I’m ready.
FBI Agent: Good luck Mr. Tobin.
Tobin set up a meeting with Coach Meredith at a hotel. In addition to Tobin being wired, the room was wired for audio and video.
Tobin: Hey coach, it feels good to be back at Yale. Fond memories for me, I didn’t play soccer, I was a hockey player
Coach Meredith: Well, I’m the soccer coach and I can get your daughter into Yale for $450,000.
Tobin: Ok, what’s next?
Coach Meredith: You give me $2,000 in cash today and the rest when she gets the acceptance letter.
Tobin: That’s it?
Coach Meredith: Yeah, pay me directly. I sometimes do these deals with Rick Singer, but I’m doing this one directly with you.
Tobin: You sure?
Meredith: Yeah, I’m sure.
Tobin: Ok, done.
The Bribe
The FBI now had Coach Meredith locked up on a serious charge. How serious? Demanding a $450,000 bribe to get a kid into a college would likely result in prison time in addition to fines and restitution.
As for Tobin, he would get a break on his sentencing for the stock-fraud crime.
But the FBI agents had a new question, “Who the heck is Rick Singer?”
Based on information from Coach Meredith, who was now working as a cooperating witness with the FBI in an attempt to reduce his prison time, the FBI was able to get wiretaps on Coach Meredith’s calls. Some time after the hotel meeting with Tobin, the FBI had the coach call Rick Singer while the agents listened in and recorded everything. It wasn’t long before the FBI figured out that Singer was running a massive college-admissions fraud.
In Singer, the FBI had its big fish. To recap, it all started with Tobin on an unrelated matter. He gave up Yale soccer coach Meredith, who in turn gave up the kingpin, Rick Singer.
You have to admire the diligence and patience of the FBI, especially with its next move.
There were several dozen parents and coaches working through Singer to illegally get kids admitted to prestigious colleges. Singer, realizing he was out of options, decided to cooperate with the FBI. And, oh my, did he ever.
In one week, the FBI had Singer telephone each person in his entire network, give them some made-up story about the IRS, and get each to implicate themselves on a recorded line as the FBI listened.
Ironically, after years of making money from Singer’s schemes, Coach Meredith got nailed when he tried to cut Singer out of the Yale soccer player deal with Tobin and go directly to Tobin for the money. I guess he believed in “greed is good” rather than “honor among thieves.”
This was how the infamous Varsity Blues scandal was uncovered.
Dialogue was transcribed from actual FBI transcripts or recreated from case files.
Key Takeaways
Money always leaves a trail. Maybe its an electronic trail or maybe its a coach or staff person at a college buying a Lambo. Even crypto is becoming traceable.
In order to write a check for $450,000, Tobin had some level of success in his life, even if he was a crook. Smart people lose perspective just like everybody else and that feeling of “I deserve this” can overcome anybody.
Its a terrible feeling to be caught in a crime and confronted by the FBI with the possibility of prison time. Imagine how it feels to then rat out your friends to reduce your sentence.
Can you help us get better?
Things I think about
It is estimated that 40%+ of visitors to Disney’s theme parks are adults with no children.
This week’s reading recommendations
OpenAI is a Bad Business
Ed Zitron is a technology contrarian. I read everything he puts out.
Antifragile: Things That Gain From Disorder
From the author of The Black Swan. You will learn to think differently after reading this.
The Monk and the Riddle
“The Art of Creating a Life While Making a Living”
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